Foreign investors take out ₹10,000 Cr from Indian stock market

Foreign portfolio investors (FPIs) have pulled out almost ₹10,710 crore from the Indian stock market in three days since the Union Budget after the government raised taxes on derivatives trades and on capital gains from equity investments.

As per stock exchange data, FPIs sold equities worth ₹2,975 crore on July 23, another ₹5,130 crore on July 24 and ₹2,605 crore on July 25.

During the same time, domestic institutional investors bought stocks worth around ₹6,900 crore since July 23.

Ahead of the Budget, FPIs had bought equities worth around ₹18,000 crore between July 12 and 22 as they anticipated a host of reform measures.

In the Budget, Nirmala Sitharaman made major announcements with respect to capital gains tax whereby the rate of tax on long-term capital gains (LTCG) is proposed to be made 12.5 per cent for all types of assets, irrespective of the transferor being a resident or a non-resident.